IEC Announces Results for the First Quarter of Fiscal 2013

IEC Announces Results for the First Quarter of Fiscal 2013 
NEWARK, NY -- (Marketwire) -- 02/05/13 --  IEC Electronics Corp.
(NYSE MKT: IEC) announced its unaudited results for the first quarter
of fiscal 2013 ending December 28, 2012.  
The Company reported revenue of $33.0 million for the quarter and net
income of $239 thousand, or $0.02 per diluted share. This compares to
revenue in the prior year first quarter of $33.9 million and net
income of $948 thousand, or $0.09 per diluted share, of which $571
thousand of the net income, or $0.06 per diluted share was associated
with the clawback arising from our Southern California Braiding
acquisition in December of 2010.  
W. Barry Gilbert, Chairman of the Board and CEO, stated, "Q1 of 2013
was disappointing. Entering the quarter we expected to exceed our 1Q
fiscal 2012 and our 4Q fiscal 2012 performance, despite a shifting
mix of business and softening demand from some of our industrial
customers. At the time, we expected that some new programs, which
were ramping up, would absorb much of the envisioned shortfall.  
"As the quarter progressed, the forecasted customer softness did
occur. Additionally, we also experienced an unexpected, major
technical delay in one of our new customer product ramps. We worked
with our customer to resolve the design/manufacturing problems and
expect to recover the lost volume and likely exceed our expectations
over the balance of the year. With the technical issues now resolved,
we anticipate that this customer's project will advance as planned
and we believe this customer will become a formidable partner for the
company moving forward.  
"Our operations in the western half of the United States, which
primarily support our military and aerospace customers, did quite
well in comparison to both last quarter and to Q1 of the previous
year. However, the increase was not enough to offset the shortfall at
our Newark facility.  
"As previously announced, I have lowered my sales growth forecast
range for fiscal 2013 to 6% to 9% from 9% to 14%. Some of our key
Industrial customers who saw strong international demand for their
products last year are experiencing a softening in demand this year.
We do not see this changing anytime soon. However, we do anticipate
an increase in demand from our military and aerospace customers.
Beyond advancing some existing orders and replacing those orders with
new orders, we have won some unannounced programs and are in the
final stages of securing other important programs. These are programs
we expect to last for many years.  
"Two weeks ago we were pleased to announce the refinancing of our
variable interest rate debt with M&T (Manufacturers and Traders Bank)
into long-term fixed rate debt. We received excellent rates for a
ten-year, long-term swap and nine-year term debt. We appreciate M&T's
confidence in us. We have substantially reduced our debt since the
SCB acquisition two years ago and have brought it to a level that
made sense for us to fix our rates for the long term. Having said
that, our debt increased in Q1 of 2013 as a result of the weaker
sales and the build up of inventory. We expect this to come into line
over the next couple of quarters.   
"In conclusion, we had a difficult quarter, and periodically that
will happen. Our perspective has not changed and we view our future
to be quite bright. That said it does not diminish our, nor your,
disappointment in this past quarter's performance. My priority item,
beyond continued company growth, is to bring our gross profit
percentage back to the appropriate level of 19% and restore our
operating profit to 9%."  
Conference Call
 IEC will host a conference call to discuss the first
quarter of fiscal 2013, today, February 5, 2013 at 10:00 a.m. Eastern
time. The conference call may be accessed in the U.S. and Canada by
dialing toll-free 1-877-407-9210. International callers may access
the call by dialing 1-201-689-8049.A replay of the teleconference
will be available for 30 days after the call and may be accessed
domestically by dialing 1-877-660-6853 and international callers may
dial 1-201-612-7415. Callers must enter conference i.d. number
408419. 
To access the live webcast, log onto the IEC website at
http://www.iec-electronics.com. The webcast can also be accessed at
http://www.InvestorCalendar.com. An online replay will be available
shortly after the call. 
About IEC Electronics 
IEC Electronics Corporation is a premier provider of electronic
manufacturing services ("EMS") to advanced technology companies
primarily in the military and aerospace, medical, industrial and
computing sectors. The Company specializes in the custom manufacture
of high reliability, complex circuit cards, system level assemblies,
a wide array of custom cable and wire harness assemblies, precision
sheet metal products and advanced research and testing services. As a
full service EMS provider, IEC is a world-class ISO 9001:2008, AS9100
and ISO13485 certified company. The AS9100 certification enables IEC
to serve the military and commercial aerospace markets. The ISO13485
certification supports the quality requirements of medical device
markets. The Company is also AC7120 Nadcap accredited for electronics
manufacturing to support the most stringent quality requirements of
the aerospace industry, as well as ITAR registered and NSA approved
under the COMSEC standard. Dynamic Research and Testing Laboratories
(DRTL), the Company's newest business unit, is an ISO 17025
accredited laboratory specializing in the testing and detection of
counterfeit electronic parts, as well as Component Risk Mitigation
and advanced failure analysis. IEC Electronics is headquartered in
Newark, NY (outside of Rochester) and also has operations in Victor,
NY, Rochester, NY, Albuquerque, NM and Bell Gardens, CA. Additional
information about IEC can be found on its web site at
www.iec-electronics.com 
The foregoing, including any discussion regarding the Company's
future prospects, contains certain forward-looking statements that
involve risks and uncertainties, including uncertainties associated
with economic conditions in the electronics industry, particularly in
the principal industry sectors served by the Company, changes in
customer requirements and in the volume of sales to principal
customers, competition and technological change, the ability of the
Company to control manufacturing and operating costs, the ability of
the Company to develop and maintain satisfactory relationships with
vendors, and the ability of the Company to efficiently integrate
acquired companies into its business. The Company's actual results of
operations may differ significantly from those contemplated by any
forward-looking statements as a result of these and other factors,
including factors set forth in the Company's 2012 Annual Report on
Form 10-K and in other filings with the Securities and Exchange
Commission. 


 
                                                                            
                    IEC ELECTRONICS CORP - CONSOLIDATED                     
                               BALANCE SHEET                                
                       DEC 28, 2012 AND SEP 30, 2012                        
                               (In Thousands)                               
                                                                            
                                                 DEC 28, 2012  SEP 30, 2012 
ASSETS                                                                      
                                                                            
CURRENT ASSETS                                                              
Cash                                                    2,778         2,662 
Accounts Receivable                                    20,279        23,193 
Inventories                                            21,898        19,348 
Deferred Income Taxes                                   1,366         1,365 
Other Current Assets                                      753           401 
                                                 ------------  ------------ 
Total Current Assets                                   47,074        46,969 
                                                 ------------  ------------ 
                                                                            
                                                                            
NET FIXED ASSETS                                       17,318        17,120 
                                                                            
NON-CURRENT ASSETS                                                          
Goodwill                                               13,810        13,810 
Intangible Assets                                       5,398         5,511 
Deferred Income Taxes                                   5,392         5,433 
Other Non-Current Assets                                  107           121 
                                                 ------------  ------------ 
TOTAL ASSETS                                           89,099        88,964 
                                                 ============  ============ 
                                                                            
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
                                                                            
CURRENT LIABILITIES                                                         
Short Term Borrowings                                   3,380         6,533 
Accounts Payable                                       12,360        15,697 
Accrued Payroll and Related Taxes                       1,991         2,676 
Other Accrued Expenses                                    755           946 
Other Current Liabilities                                  90           146 
                                                 ------------  ------------ 
Total Current Liabilities                              18,576        25,998 
                                                 ------------  ------------ 
                                                                            
LONG TERM DEBT                                         28,227        21,104 
                                                 ------------  ------------ 
TOTAL LIABILITIES                                      46,803        47,102 
                                                                            
SHAREHOLDER'S EQUITY                                                        
Authorized - 50,000,000 shares                                              
Issued - 11,026,733 Outstanding - 10,011,275                                
Common stock, par value $.01 per share                    110           109 
Treasury Shares at Cost - 1,015,458 shares             (1,435)       (1,435)
Additional Paid-in Capital                             43,269        43,075 
Retained Earnings                                         352           113 
                                                 ------------  ------------ 
TOTAL SHAREHOLDER'S EQUITY                             42,296        41,862 
                                                 ------------  ------------ 
TOTAL LIABILITIES & EQUITY                             89,099        88,964 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                    IEC ELECTRONICS CORP - CONSOLIDATED                     
                            STATEMENT OF INCOME                             
            FOR QUARTER END & YTD DEC 28, 2012 AND DEC 30, 2011             
                               (In Thousands)                               
                                                                            
                              ACTUAL       ACTUAL       ACTUAL       ACTUAL 
                             QUARTER      QUARTER          YTD          YTD 
                        DEC 28, 2012 DEC 30, 2011 DEC 28, 2012 DEC 30, 2011 
                                                                            
Sales                         32,989       33,859       32,989       33,859 
Cost of Sales                 28,285       28,372       28,285       28,372 
                        ------------ ------------ ------------ ------------ 
                                                                            
Gross Profit                   4,704        5,487        4,704        5,487 
                                                                            
Less: Operating Expenses                                                    
Selling & Administrative                                                    
 Expenses                      4,046        4,533        4,046        4,533 
                        ------------ ------------ ------------ ------------ 
                                                                            
Operating Profit                 658          954          658          954 
                                                                            
                                                                            
Interest and Financing                                                      
 Expense                         279          353          279          353 
Other (Income)/Expense             -         (902)           -         (902)
                        ------------ ------------ ------------ ------------ 
                                                                            
Net Income before Income                                                    
 Taxes                           379        1,503          379        1,503 
                                                                            
                                                                            
Provision for Income Tax         140          555          140          555 
                        ------------ ------------ ------------ ------------ 
Net Income                       239          948          239          948 
                        ============ ============ ============ ============ 
                                                                            
                                                                            
                                                                            
Basic Earnings Per Share       $0.02        $0.10        $0.02        $0.10 
Diluted Earnings Per                                                        
 Share                         $0.02        $0.09        $0.02        $0.09 
                                                                            
                                                                            
Basic Shares               9,647,210    9,645,942    9,647,210    9,645,942 
Diluted Shares             9,968,147   10,004,359    9,968,147   10,004,359 
                                                                            
                                                                            
                                                                            
                     IEC ELECTRONICS CORP - CONSOLIDATED                    
                    RECONCILIATION OF NET INCOME TO EBITDA                  
              FOR QUARTER END & YTD DEC 28, 2012 & DEC 30, 2011             
                                                                            
                               ACTUAL       ACTUAL       ACTUAL       ACTUAL
                              QUARTER      QUARTER          YTD          YTD
                         DEC 28, 2012 DEC 30, 2011 DEC 28, 2012 DEC 30, 2011
                                                                            
Net Income                        239          948          239          948
                                                                            
Provision for / (benefit                                                    
 from) Income Tax                 140          555          140          555
                                                                            
Depreciation &                                                              
 Amortization Expense           1,140          987        1,140          987
                                                                            
Net Interest Expense /                                                      
 (Income)                         279          353          279          353
                         ------------ ------------ ------------ ------------
EBITDA                          1,798        2,843        1,798        2,843
                                                                            
                                                                            
Basic Earnings per Share         0.02         0.10         0.02         0.10
Basic EBITDA per Share           0.19         0.29         0.19         0.29
                                                                            
Diluted Earnings per                                                        
 Share                           0.02         0.09         0.02         0.09
Diluted EBITDA per Share         0.18         0.28         0.18         0.28
                                                                            
                                                                            
Basic Shares                9,647,210    9,645,942    9,647,210    9,645,942
Diluted Shares              9,968,147   10,004,359    9,968,147   10,004,359

  
Contact:
Vincent Leo
CFO
(315)332-4308
VLeo@iec-electronics.com 
John Nesbett or Jennifer Belodeau
Institutional Marketing Services
IEC Electronics Corp.
(203)972-9200
jnesbett@institutionalms.com
jbelodeau@institutionalms.com 
 
 
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